Forex Marketz Daily Forex News – Fully Markets Update
Asian and Pacific Rim markets were trading mostly higher on Monday as sentiment among Asian traders improved. Traders are digesting a partial trade deal between the United States and China and other commentary from high level trade talks between the two countries from last week.
The financial markets, including the Asian headline bourse, the Nikkei 225, were closed in Japan for a public holiday. This limited volume during the session.
In Australia, the headline S&P ASX 200 was up 0.62 percent as the heavily weighted financial sub-index added three quarters of a percent. Shares of Australia’s Big Four Banks were higher on the day.
In Hong Kong, the Hang Sen index was up over one percent. In South Korea, the Kospi composite index added 1.35 percent. Shares of Samsung Electronics added 1.93 percent and Shares of SK Hynix were up 1.25 percent.
On the mainland, in China, the Shanghai composite was up 1.38 percent and the Shenzhen composite gained 1.4 percent. The Shenzhen component tacked on 1.32 percent.
Asian Traders Monitor Chinese Customs Data and Trade Negotiations
Chinese customs data, for the month of September, showed (in dollar terms) that exports fell 3.2 percent and imports gave up 8.5 percent. These numbers were weaker than expected. The total trade balance, for September, came in at $39.65 billion.
Regional traders were digesting comments from U.S. Treasury Secretary Steven Mnuchin. On Friday, Mnuchin said that tariffs on $250 billion of Chinese imports that were supposed to increase to thirty percent from 25 percent on October 15 will not happen.
After Mnuchin spoke, U.S. President Donald Trump that both sides reached a “very substantial phase one deal.” Trump said that this deal addressed concerns ranging from intellectual property to financial services concerns. He also said that China would buy nearly $40 to $50 billion worth of agricultural products.
Traders, however, and rightfully so, remain skeptical as they have been down this road. There is a long way to go before both sides sign an actual trade deal.
